This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI Answer
Another day — let's solve it. Here are the journal entries for the given transactions: Step 1: Journal Entry for February 2 Cash purchases Gh 3,000. l l r r Date & Account & Debit (Gh) & Credit (Gh) \\ Feb 2 & Purchases & 3,000 & \\ & Cash & & 3,000 \\ Step 2: Journal Entry for February 4 Paid Rama, a creditor, Gh 1,000 cash after deducting Gh 100 cash discount. The total liability to Rama was Gh 1,000 (cash paid) + Gh 100 (discount received) = Gh 1,100. l l r r Date & Account & Debit (Gh) & Credit (Gh) \\ Feb 4 & Rama (Creditor) & 1,100 & \\ & Cash & & 1,000 \\ & Discount Received & & 100 \\ Step 3: Journal Entry for February 8 Cash purchases Gh 1,500. l l r r Date & Account & Debit (Gh) & Credit (Gh) \\ Feb 8 & Purchases & 1,500 & \\ & Cash & & 1,500 \\ Step 4: Journal Entries for February 10 Paid creditors by cheque after deducting 10% cash discount. For Odanga: Original amount Gh 2,000. Discount = 10\% × 2,000 = Gh 200. Payment = 2,000 - 200 = Gh 1,800. l l r r Date & Account & Debit (Gh) & Credit (Gh) \\ Feb 10 & Odanga (Creditor) & 2,000 & \\ & Bank & & 1,800 \\ & Discount Received & & 200 \\ For Gaisi: Original amount Gh 3,500. Discount = 10\% × 3,500 = Gh 350. Payment = 3,500 - 350 = Gh 3,150. l l r r Date & Account & Debit (Gh) & Credit (Gh) \\ Feb 10 & Gaisi (Creditor) & 3,500 & \\ & Bank & & 3,150 \\ & Discount Received & & 350 \\ Step 5: Journal Entry for February 15 Bought furniture worth Gh 10,000 by cash. l l r r Date & Account & Debit (Gh) & Credit (Gh) \\ Feb 15 & Furniture & 10,000 & \\ & Cash & & 10,000 \\ Step 6: Journal Entry for February 20 Paid Chona, a creditor, Gh 4,500 by cheque. l l r r Date & Account & Debit (Gh) & Credit (Gh) \\ Feb 20 & Chona (Creditor) & 4,500 & \\ & Bank & & 4,500 \\ Step 7: Journal Entry for February 25 Bought stationery worth Gh 3,000 by cash. l l r r Date & Account & Debit (Gh) & Credit (Gh) \\ Feb 25 & Stationery & 3,000 & \\ & Cash & & 3,000 \\ Step 8: Journal Entry for February 27 Cash purchases Gh 2,000. l l r r Date & Account & Debit (Gh) & Credit (Gh) \\ Feb 27 & Purchases & 2,000 & \\ & Cash & & 2,000 \\ Step 9: Journal Entry for February 28 Paid Muramba, a creditor, Gh 1,000 by cheque. l l r r Date & Account & Debit (Gh) & Credit (Gh) \\ Feb 28 & Muramba (Creditor) & 1,000 & \\ & Bank & & 1,000 \\ What's next? Send 'em! 📸